22nd Nov 2022 08:36
(Alliance News) - CRH PLC on Tuesday backed annual guidance as the building materials firm said it has been able to cope with a "challenging and volatile cost environment".
In the nine months to September 30, revenue was up 13% year-on-year to USD24.4 billion, while earnings before interest, tax, depreciation and amortisation were 14% higher at USD4.2 billion.
CRH's Ebitda margin improved 10 basis points year-on-year to 17.1%.
"Notwithstanding a challenging and volatile cost environment, I am pleased to report further growth in sales, Ebitda and margin during the first nine months of the year. This performance reflects the resilience of our business and the benefits of our integrated and sustainable solutions strategy," Chief Executive Albert Manifold said.
"The strength of our balance sheet combined with our relentless focus on disciplined capital allocation provides further opportunities to create value for all our stakeholders."
CRH backed annual guidance, expecting an annual Ebitda of USD5.5 billion, ahead of the USD5.0 billion achieved in 2021.
In addition, it said it expects annual pretax profit to be ahead of 2021's USD3.1 billion. It forecasts at depreciation and amortisation expense largely in line with 2021's USD1.7 billion, but expects disposal gains below the USD116 million achieved last year.
A lower share of profit from equity accounted entities will keep a lid on its bottom line growth. CRH expects its share of profit to be behind 2021's USD55 million, due to the performance of its Covid-19-hit associate in China.
On returns, the company said it expects to distribute USD1.2 billion to shareholders in 2022 through ongoing buybacks.
CRH added: "Looking ahead to 2023, despite the uncertain economic environment, we are well positioned in our core markets of North America and Europe to continue to deliver shareholder value through our integrated solutions strategy and our relentless focus on margin expansion, cash generation and returns enhancement."
CRH shares were 1.4% lower at 3,298.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
CRH